MaxFX Review - Is it scam or safe?

RECOMMENDED FOREX BROKERS

Account Types

Account Type

Minimum Deposit

Minimum trade size

Maximum leverage

Average Spreads

Professional MAX

$500

0.01

1:500

0,7 pips EUR/USD + $3.5 commission per lot (per side)

MaxFX provides a single type of trading account – a general STP one. This account has a requirement for a minimum deposit of USD 500, offers tight spreads and a choice of two popular trading platforms. What is more, micro lots are available for trade to inexpereinced clients or such unwilling to trade in large volumes.

Besides, there are swap-free (Islamic) accounts available to Muslim investors. These accounts are designed to give everything the basic ones offer, with the main characteristic of no swap points on overnight positions in order to be Sharia compliant. A handling fee of $5 per lot opened applies, charged from the 2nd day of a position remaining open.

What is more, VIP service is available to large-volume traders with higher deposits, providing better trading conditions, Dedicated Account Manager and MaxFX Premium Credit Card.

Like most brokers, MAXFX provides a PAMM account - an investment service that offers investors the opportunity to make money without actually engaging themselves in trading. PAMM account managers, on the other hand, can gain more income for managing investor funds.

The Company. Security of Funds

MAXFX is an ECN/STP broker, offering trading in various assets, including over 60 currency pairs, precious metals and commodities through the MetaTrader 4 and cTrader platforms.

Founded in, MAXFX is the trading name of TopFX Ltd., registered as a Cyprus Investment Firm (CIF) and licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC).

CySEC applies a set of rules and requirements to license holders, which are not as stringent as in UK for instance, yet they provide a certain level of security.

The Commission requires Cyprus-based forex brokers to hold at least €1,000,000 as a proof of financial stability. Furthermore, CySEC applies a compensation scheme as an additional guarantee to clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund, able to provide compensations to a maximum of 20,000 EUR per person in the event of broker insolvency.

In addition, as CySEC is part of the European MiFID regulations, the companies regulated by Cypriot financial watchdog are free to operate in all EU Member States.

What is more, according to a statement om MAXFX’s website, client funds are kept in segregated accounts and a limit of $825 million is set on total Net Open Positions at any given time on Prime Brokers’ level as a part of their risk management strategy.

Trading Conditions

Minimum Initial Deposit
The minimum initial deposit for MAXFX’ clients is $500, which is a comparatively high initial amount, given that that leading Cyprus-based brokerages, such as XM and FXTM, both require just $5 from traders to open an account.

Average Spreads & Commissions
As a NDD broker, MAXFX offers tight variable spreads, starting from 0.1 pips on EUR/USD, the average value being around 0.7 pips. In addition, a commission of $3.5 per lot (per side) applies. So, if we include the commission, average trading costs with this broker amounts to around 1.4 pips, which is average for the forex market.

In comparison, Exness, also holding a CySEC license, offers to ECN account holders average spreads of 0.4 pips on EUR/USD, involving a commission amounting to $ 2.5 per standard lot.

Leverage
The maximum leverage level provided by this broker is 1:500, which is a comparatively high ratio. Nonetheless, many other Cyprus-based brokers offer similar or even higher leverage levels: Easy-forex offers maximum leverage rates of 1:400, FXTM provides leverage levels as high as 1:1000 and Exness recently launched Unlimited Leverage Promotion. More forex brokers, offering leverage 1:500 and higher can be viewed here.

Traders, however, should be careful when operating with higher leverage levels, for they may not only multiply their profits on a small deposit, but also lead to heavy losses in excess of their initial investments.

Trading Platforms

MaxFX offers its clients a choice of two trading platforms: cTrader and MetaTrader 4 (MT4).

cTrader is a market-redefining, award winning ECN multi-asset trading platform, providing fast order entry and execution speeds, direct order entry via charts and Level II pricing. The MaxFX cTrader suite includes a PC, web and mobile versions, as well as cMirror, Spotware’s mirror & social trading application. cMirror works with all cTrader accounts and is Broker agnostic, which means a trader can copy any signal provider, regardless of whether they both reside with different brokers within the cTrader ecosystem.

In addition, MAXFX supports the popular trading platform MetaTrader 4, desktop and mobile versions available. MT4 is the preferred choice of platform of most experienced traders, because it is equipped with an advanced charting package, a number of technical indicators, Expert Advisors (EA) and extensive back-testing environment. Here is a list of more forex brokers offering MT4 platform.

In addition, MaxFX has partnered with Myfxbook to offer Autotrade - a platform that enables you to mirror the trades you find profitable straight to your cTrader or MetaTrader 4 account without difficulty.

Promotions
What is more, MaxFX has partnered with Myfxbook on its PayBackFX rebate service, which allows traders to get rebates for each closed position with any of the supported brokers, regardless whether their trade is a winning one or not. MaxFX’s clients may benefit from rebates amounting to $1.5/Round Turn Lot.

Conclusion

MAXFX is a reliable and well-regulated STP broker, offering trade in currency pairs, CFDs and precious metals through two of the most popular platforms. To sum up the above, here are the advantages and drawbacks in relation to this broker:

FXTM a regulated forex broker (regulated by CySEC, FCA and IFSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $5 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

easyMarkets is a CySEC and ASIC regulated broker offering access to over 300 trading instruments, tight fixed spreads, no slippage and a 50% deposit bonus.

HYCM is global forex broker with more than 40 years of operational experience, regulated by FCA in the UK. Trade Forex with spreads as low as 0.2 pip

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an ongoing monthly $999 forex contest, offers a $5 no-deposit bonus for anyone willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage - one of the highest in the industry.

Forex trading carries a high level of risk and may not be suitable for all investors. Before you engage in trading foreign exchange, please make yourself acquainted with its specifics and all the risks associated with it.
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